Fulton Company has the following data available:
$\begin{array}{l}

\text {Cost of Goods Sold, For the Year Ending December 31, 2013} & \$ 470 \
\text {Cost of Goods Sold, For the Year Ending December 31, 2012} & \$440 \
\text {Sales, For the Year Ending December 31, 2013} & \$ 900 \
\text {Sales, For the Year Ending December 31, 2012} & \$ 800 \
\text {Net Income, For the Year Ending December 31, 2013} & \$ 130 \
\text {Net Income, For the Year Ending December 31,2012} & \$ 110 \
\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2013 cost of goods sold of Fulton Company?
A)52.2%
B)19.4%
C)28.3%
D)2)2%
E)100%

Question

Fulton Company has the following data available: 
$\begin{array}{l}

\text {Cost of Goods Sold, For the Year Ending December 31, 2013} & \$ 470 \
\text {Cost of Goods Sold, For the Year Ending December 31, 2012} & \$440  \
\text {Sales, For the Year Ending December 31, 2013} & \$ 900 \
\text {Sales, For the Year Ending December 31, 2012} & \$ 800 \
\text {Net Income, For the Year Ending December 31, 2013} & \$ 130 \
\text {Net Income, For the Year Ending December 31,2012} & \$ 110 \
\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2013 cost of goods sold of Fulton Company?
A)52.2%
B)19.4%
C)28.3%
D)2)2%
E)100%

Quizplus · Accepted Answer

The common size percentage for cost of goods sold is calculated by dividing the cost of goods sold by sales for the same year. For 2013, it is $(470/900) \times 100 = 52.2\%$.

Fulton Company Has the Following Data Available If a Common Size Income Statement Were Prepared,what Percentage Would